Space Transportation Services Under SAC Code 996532
Space transportation services for goods cover sending cargo into outer space or near space using launch vehicles, rockets or spacecraft. Operators provide launch and delivery services for satellites, research payloads and other space cargo. Under GST, these space freight and commercial space cargo transport services are classified under SAC 996532. This SAC code and its GST rate decide how GST applies on such specialised services. This supports high value satellite launches and advanced research missions for global clients.
Space Transportation Services GST Rate for SAC Code 996532
Space transportation services for goods under SAC 996532 are treated as highly specialised transport services under GST. These are typically taxable because they are premium, optional services with high value contracts.
After the September 2025 rationalisation, taxable goods transport services under these codes broadly follow the 5 percent slab without input tax credit for standard freight models and 18 percent with input tax credit for certain structured or input intensive arrangements. The exact rate, exemptions and reverse charge conditions depend on the mode, route and latest GST notifications.
The table below explains the current GST rate applicable to SAC code 996532 for typical goods transport services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996532 | Space transport services of freight | 5% without ITC / 12% with ITC / 18% with ITC | 5% without ITC / 18% with ITC | Under the general goods transport heading. The 56th Council’s rationalisation for logistics moves 12% full-ITC variants to 18% with ITC, retaining 5% without ITC in concessional cases; that pattern is applied to this code as well for standard domestic supplies. |
When issuing freight invoices under this SAC code, service providers should clearly show the freight value, the GST rate and amount and whether GST is payable by them or by the recipient under reverse charge. The same SAC code and rate pattern should be followed in GSTR 1 and GSTR 3B so that consignors and consignees can account for input tax credit correctly where allowed.
Explore Other SAC Codes Under 9965
This SAC code is part of the goods transport services group 9965, which covers movement of goods by road, rail, water, air and other modes. The six digit SAC codes under this group help separate road freight, rail freight, coastal shipping, inland water transport, air cargo and specialised freight services for GST classification.
The list below highlights key six-digit SAC codes under 9965
Transporters and logistics companies should select the SAC code that most closely matches the mode and pattern of their goods transport service. Using the correct SAC, understanding when 5 percent without input tax credit or 18 percent with input tax credit applies, and applying reverse charge rules wherever needed helps avoid disputes and keeps the GST input tax credit trail clean.
Conclusion
Space transportation services for goods under SAC 996532 cover launching satellites and other payloads into space. These services are typically taxed at 18 percent with input tax credit given their highly specialised and capital intensive nature. Space service providers and clients should structure contracts clearly, apply the proper GST rate on invoices and maintain detailed documentation in GST returns. Given the evolving policy in this field, it is essential to follow the latest GST notifications and take professional advice for large projects.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Frequently Asked Questions
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What is SAC code 996532 in GST for space transportation services?
SAC 996532 covers transport of goods and cargo through space. It is used for commercial services that carry satellites, equipment or other payloads into space, usually as part of launch services or orbital delivery for customers such as space agencies or private companies.
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Does SAC 996532 cover space freight and commercial space cargo services?
Yes. Launch services that carry customer satellites or cargo into orbit, or transport items to space stations, come under SAC 996532. The focus is on moving goods or payloads, not passengers, so it is distinct from space tourism codes which apply to people travelling.
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What GST rate applies to services under SAC 996532?
Space cargo transport and launch services are highly specialised and are generally treated as fully taxable services, typically attracting the standard GST rate like 18%. Any special incentives or exemptions for space activities would be separately notified and must be checked for the relevant period.
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Should satellite launch cargo contracts use SAC 996532 on invoices?
Yes. Contracts where an organisation pays to launch and place its satellite or equipment into space should usually be invoiced under SAC 996532. This clearly identifies the service as space transport of goods, which helps in applying correct GST rules on place of supply and taxation.
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Can companies claim ITC on GST paid for SAC 996532 services?
Where companies use launch services for business purposes and GST is charged, they can usually claim ITC on the tax paid, subject to normal credit rules. Proper contracts, tax invoices and linking the expense to taxable business outputs are essential to support the input tax credit claim.